[Kate*]

As someone who has done this, if you feel burned out, not ready, or not stable enough to start grad school right now, don't. It's okay to take time off, a lot of people do it. Especially if this is a PhD. program, but even if it's not, you won't have time or flexibility to travel if you want to and your mental health can take major blows in these programs. When I got dismissed from my program, my first concern was my loans. Since it was (somewhat) sudden, I wasn't prepared to start paying them. I'm assuming all your loans are federal. There are payment plans and adjustments you can make if you can't make payments. I qualify for an income-based repayment plan and I have no income, so my payment is $0, without the loans defaulting or affecting my credit, (but the interest is still accruing.) Start exploring your options now and set something up before your grace period ends. Yes, lenders want their money, but they're willing to work with you if you can't pay or need to lower your payments. Also, don't refinance without talking to a professional first; it may sound like a good idea, but you can lose payment options if you do that.

Depending on the program, they almost never take as long as the maximum time limit and I think you can defer, but don't quote me. So, even if you go through with the application now, you can still take time off and finish your degree in time.